Thursday, August 03, 2006

Create value & create desire

Peter Drucker wrote that business is only about innovation and marketing.

INNOVATION means creating new or better value.

MARKETING means creating a customer.

In short, to become wealthy -- and business is probably the best and most predictable instrument for achieving one's financial independence -- you have to create two things:
  • Value outside
  • Desire inside
Value is anything that a specific type of person wants, and is willing to pay for.

Desire is, well, the desperate urge to get and have and use that thing or value.

If you can create value but not desire, that's not good.
If you can create desire but not value, that's also not good.

To succeed in business requires mastery of the value creation process, as well as the desire creation process.